XML 61 R26.htm IDEA: XBRL DOCUMENT v3.24.1.1.u2
Leases
12 Months Ended
Dec. 31, 2023
Lease liabilities [abstract]  
LEASES LEASES
19.1Accounting policies
Lease liabilities are recognized, measured, presented and disclosed in accordance with IFRS – 16 Leases, against right-of-use assets, the accounting policies adopted by the Company for leasing operations are presented in note 16.
19.2Renegotiations
During the year ended December 31, 2023, the Company defined the conditions for renegotiations and began to sign, who agreed to receive negotiable debt securities maturing in 2030 and shares priced to reflect Azul's new cash generation, its improved capital structure and the reduction of its credit risk.
Until December 31, 2023, the Company had renegotiated 119 lease contracts under these new conditions. In general, the conditions agreed between the Company and lessors are as follows:
Notes: R$1,385,115 (equivalent to US$286,104), with interest to be paid quarterly from December 2023, with interest of 7.5% p.a., and principal maturity in June 2030; and
Convertible to equity: R$2,178,740 (equivalent to US$450,032), with interest-free and consecutive quarterly payments, starting in July 2024.
The costs incurred in these transactions correspond to R$84,421 and were recognized in the statement of operations as required by IFRS 9 – Financial Instruments.
December 31,
Description20232022
Leases12,455,827 14,582,833 
Leases – Notes1,030,845 — 
Leases – Convertible to equity1,659,739 — 
15,146,411 14,582,833 
Current liabilities3,687,392 4,025,948 
Non-current assets11,459,019 10,556,885 
19.3Movement of Leases
DescriptionAverage remaining termWeighted average rateDecember 31,
2022
Additions
Modifications
PaymentsInterest incurred
Transfers(b)
Write-offsForeign currency exchangeDecember 31,
2023
Lease without purchase option:
Aircraft(a)
8.116.3  %13,585,810 1,086,943 1,090,251 (2,834,794)2,209,708 (2,544,154)(103,107)(922,775)11,567,882 
Others4.610.3  %185,527 21,763 76,266 (55,934)19,194 — — (9,562)237,254 
Lease with purchase option:
Aircraft(a)
5.013.8  %811,496 — 70,806 (192,819)99,766 (90,815)— (47,743)650,691 
Total14,582,833 1,108,706 1,237,323 (3,083,547)2,328,668 (2,634,969)(103,107)(980,080)12,455,827 
Current 4,025,948 3,349,056 
Non-current 10,556,885 9,106,771 
(a)Includes aircraft, engines, and simulators.
(b)The transfer balances are between “Loans and financing”, “Leases”; “Leases: Notes and Convertible to equity”; “Accounts payable” and “Other liabilities”.
DescriptionAverage remaining termWeighted average rateDecember 31,
2021
AdditionsModificationsPaymentsInterest incurredWrite-offsForeign currency exchangeDecember 31, 2022
Lease without purchase option:
Aircraft(a)
7.621.3 %13,724,647 1,507,577 55,342 (3,220,152)2,400,049 (1,123)(880,530)13,585,810 
Other4.99.8 %71,869 193,360 11,452 (38,031)15,798 (67,416)(1,505)185,527 
Lease with purchase option:
Aircraft(a)
5.818.5 %1,094,059 113,231 (113,993)(345,503)117,281 — (53,579)811,496 
Total 14,890,575 1,814,168 (47,199)(3,603,686)2,533,128 (68,539)(935,614)14,582,833 
Current 3,497,665 4,025,948 
Non-current 11,392,910 10,556,885 
(a)Includes aircraft, engines, and simulators.
19.4Leases – Notes
DescriptionAverage remaining termWeighted average rateDecember,31 2022AdditionsInterest incurred
Transfers(a)
Foreign currency exchangeDecember 31, 2023
Financing with lessors – Notes6.514.8 %— 11,097 36,292 1,018,404 (34,948)1,030,845 
Total
— 11,097 36,292 1,018,404 (34,948)1,030,845 
Current— 121,948 
Non-current— 908,897 
(a)The transfer balances are between “Leases” and “Leases: Notes and Convertible to equity”.
19.5Leases – Convertible to equity
DescriptionAverage remaining termWeighted average rateDecember,31 2022AdditionsInterest incurred
Transfers(a)
Foreign currency exchangeDecember,31 2023
Financing with lessors – Convertible to equity3.614.6 %— 17,270 55,597 1,640,771 (53,899)1,659,739 
Total
— 17,270 55,597 1,640,771 (53,899)1,659,739 
Current— 216,388 
Non-current— 1,443,351 
(a)The transfer balances are between “Leases” and “Leases: Notes and Convertible to equity”.
19.6Schedule of amortization of leases
December 31,
Description20232022
2023— 4,387,911 
20243,570,147 4,162,958 
20252,851,258 3,579,587 
20262,615,718 3,237,509 
20272,226,313 2,909,201 
After 20279,594,071 8,512,031 
Minimum lease payments20,857,507 26,789,197 
Financial charges(8,401,680)(12,206,364)
Present value of minimum lease payments12,455,827 14,582,833 
Current3,349,056 4,025,948 
Non-current9,106,771 10,556,885 
19.7Schedule of amortization of leases – Notes
DescriptionDecember 31, 2023
2024130,432 
2025103,883 
2026103,883 
2027103,883 
After 20271,644,823 
Minimum lease payments2,086,904 
Financial charges(1,056,059)
Present value of minimum lease payments1,030,845 
Current121,948 
Non-current908,897 
There were no comparative balances as of December 31, 2022.
19.8Schedule of amortization of Leases Convertible to equity
DescriptionDecember 31, 2023
2024235,897 
2025726,247 
2026726,247 
2027490,348 
Minimum lease payments2,178,739 
Financial charges(519,000)
Present value of minimum lease payments1,659,739 
Current216,388 
Non-current1,443,351 
There were no comparative balances as of December 31, 2022.
19.9Covenants
As of December 31, 2023, the Company has lease liabilities subject to covenants related to the indebtedness level and the debt service coverage ratio.
Covenant related to:"Indicators for the measurement"Frequency of measurement
Required
Reached
Aircraft financingAnnual(i) Adjusted debt service coverage ratio (DSCR); and
(ii) Financial leverage
(i) equal to or greater than 1.2; and
(ii) less than or equal to 5.5.
Waiver